Worcester manager's school budget reduces gap with state spending formula

Saturday

May 4, 2013 at 12:54 PMMay 4, 2013 at 12:55 PM

By Nick Kotsopoulos, TELEGRAM & GAZETTE STAFF

WORCESTER — City Manager Michael V. O'Brien has notified School Superintendent Melinda J. Boone that he will be recommending $297.3 million in funding for the public schools as part of his fiscal 2014 municipal budget proposal to be released later this month.

While that is roughly $4.4 million more than this year's allocation, it will still leave the city $428,000 below the required spending level for next fiscal year set by the state's net school spending formula, according to Ms. Boone.

She said the city manager's funding recommendation does not reflect a requested budget from her, but it does reduce the overall net school spending gap in half from the current year.

The city fell short of meeting the net school spending benchmark this fiscal year by $862,531.

"Overall, the city will be $428,000 below the required spending in fiscal year 2014 when the carry-over shortfall is applied to (next year's) contribution level," the superintendent wrote in a memo sent to School Committee members Friday along with the budget notification from the city manager.

Meanwhile, at least one member of the School Committee says that while progress is being made in getting the city closer to reaching the state's net school spending benchmark, it is no reason for public school officials to rest with the city manager's budget recommendation.

School Committee member Tracy O'Connell Novick said she hopes the City Council will push to reduce that shortfall even more, if not all together, during its budget deliberations.

"It's progress," Ms. O'Connell Novick said. "It's not as bad as it has been in the past, and it could have been worse. I feel we have gotten halfway there in terms of the conversation about the city's obligation to meet net school spending. It is a conversation I feel we need to continue having with the City Council."

In explaining his budget recommendation for the public schools, Mr. O'Brien said fiscal strains at the state and federal levels continue to manifest themselves in either level funding or reductions of their allocations to the city.

He said that is compounded by the fact that the city's fixed costs, unfunded mandates and unfunded pension and retiree health care liabilities are eating up any new revenues the city will have.

"It is a known fact that this community prioritizes our public schools and public safety in their list of key municipal services," Mr. O'Brien wrote. "I must balance those priorities with all the other municipal services our citizens and taxpayers also expect and demand.

"Our desire to provide funds to Worcester Public Schools goes well beyond legal requirements for the quality of our public education defines our quality of life here and our overall future as well," he added.

In putting together his fiscal 2014 budget proposal, Mr. O'Brien said he had to delay the new and much-needed police and firefighter recruit classes from July 1 to September or later so he could set aside $297.3 million for the public schools, thus reducing the city's net school spending deficit by $434,613.

He pointed out that his budget figure for the public schools addresses a $747,000 increase that is anticipated in transportation costs, which are not factored in as part of net school spending.

"It's not an easy decision to make for the manpower needs in our public safety departments are great and immediate," Mr. O'Brien wrote.

But Ms. O'Connell Novick said while she appreciates the need for new police and firefighter recruit classes, she does not believe that education has to be pitted against public safety.

She said the non-school portion of the municipal budget makes up for more than $200 million in spending and feels there are other areas in that side of the budget where money can be reallocated so the city can meet its net school spending obligation.

"I feel like we've been spending years at this point getting the city to acknowledge that it is not meeting its net school spending requirement," Ms. O'Connell Novick said. "I'm glad to see there is finally that acknowledgment, but I feel there are other ways (increasing the city's contribution for education) could have been done."

If the city is unable to increase its contribution further for next fiscal year, Ms. O'Connell Novick said she would like to see the city manager come out with a concrete plan on how the city will finally meet its net school spending obligation in the near future.

But Mr. O'Brien described net school spending as "a constantly moving goal post" that is well beyond his control and predictability.

He pointed out that last fall, four months into the current fiscal year, the state reduced its charter school reimbursements. That, in turn, pushed the city's net school spending below state requirements at that time by an additional $500,000, to $1.3 million.

Before the City Council set the tax rates for this fiscal year, the manager recommended $500,000 from his contingency account to make up the difference.

"If the state did not move goal posts and whack us midyear with a reduction in our charter school reimbursement, the $500,000 that was transferred from my contingency account in November and my recommendation for next fiscal year would have the city, by my calculations, $100,000 above net school spending for fiscal year 2014," Mr. O'Brien said.

"This shows how the goal posts move, even mid-fiscal year, and that it is well beyond my control, yet I have to try to meet this elusive standard," he said.